Retiring Partner's Loan Account Class 12 Accountancy | Part 1 Practice Question

Описание: 💰 MASTERING THE RETIRING PARTNER’S LOAN ACCOUNT (PART 1)

Are you confused about how to handle the final payment to a retiring partner? In this session, we tackle the "most demanding" topic in the Retirement chapter: the Retiring Partner's Loan Account. Many students lose marks here because they struggle with interest timing and reducing balances.

We break down the first major scenario (Case 1) where the installment amount is not directly given and must be calculated. Using a full practical example of Bhaskar’s retirement (Rs. 3,00,000 balance), we show you how to prepare a 3-year ledger account from start to finish.

📌 WHAT YOU'LL MASTER IN THIS SESSION:

Case 1 vs. Case 2: Identifying whether the installment amount is given or needs to be calculated.

Installment Calculation: Determining the annual principal payment for equal installments.

Interest on Reducing Balance: Mastering the 10% p.a. calculation as the loan balance decreases.

Ledger Posting Mastery: How to record "By Interest" and "To Bank" entries correctly.

Account Closure: Ensuring the loan account hits a zero balance at the final settlement.

⏰ CHAPTER TIMESTAMPS:

00:00 — Welcome & Revision of Retirement Basics
01:12 — Why the Loan Account is a "Most Demanding" Exam Topic
02:07 — Two Types of Loan Account Questions (Case 1 vs Case 2)
03:52 — Case 1 Explained: Equal Installments with Interest
08:55 — Identifying the Language in the Question (Installment vs Balance)
10:59 — Practical Problem Start: Bhaskar's Loan Account Preparation
13:02 — Year 1: Interest Accrual and First Payment Posting
16:14 — Year 2: Handling the Reducing Balance Interest
19:03 — Year 3: Final Settlement & Closing the Account

📖 KEY EXAM HIGHLIGHTS:

THE PRINCIPAL FORMULA: If the question mentions "Equal Annual Installments," use this logic: Principal Installment = Total Amount Due / Number of Installments [at 08:20]

CALCULATION RULE: Interest is always calculated on the Opening Balance (outstanding amount) of that year, not the original loan amount.

THE STUDENT TRAP: Remember to add the interest to the principal before making the bank payment.

Interest Entry: Interest A/c Dr. to Partner's Loan A/c

Payment Entry: Partner's Loan A/c Dr. to Bank A/c [at 14:44]

🚀 FOLLOW THE FULL SERIES:

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